The High Representative, Paddy Ashdown, last week enacted amendments to the Law on the Indirect Taxation System in Bosnia and Herzegovina. The decision is a result of an inconsistency between certain BiH laws and the Law on Indirect Taxation System, where civil servants with appropriate expertise in the field of indirect taxation may be prevented from being appointed as members of the Board. Without these amendments advisors with executive functions and the relevant experience were barred from being members of the Board. The High Representative amended the BiH Law on Conflict of Interests and BiH and Entity Laws on Civil Service.
The High Representative enacted these amendments following consultations with the ITA and its Governing Board, relevant institutions of BiH and the Entities.
The timely establishment of the ITA and implementation of reforms in the field of indirect taxation is one of the pre-requisites for start of the accession negotiations with European Union, as specified in EU Feasibility Study. Therefore, the Governing Board clearly needs to have available to it expertise and experience of those who are most competent in the field of indirect taxation.